TCRLA_Public/021101.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

           Friday, November 1, 2002, Vol. 3, Issue 217

                           Headlines


A R G E N T I N A

AEROLINEAS ARGENTINAS: Bankruptcy Emergence Expected Soon
PECOM ENERGIA: Sells Venezuelan Gas Field Shares
PEREZ COMPANC: Announces JV Agreement With Teikoku Oil
* S&P Rates Argentine BODEN Bonds CC


B R A Z I L

BRASIL TELECOM: Dollar-Denominated Debt Swells In 3Q02
BSE: Fitch Cuts Ratings
FIAT: May Sell Bank in Brazil to Raise Cash
MRS LOGISTICA: Fitch Drops Local Currency To BB- on Weakness
NET SERVICOS: Board Notes Ongoing Debt Renegotiation Decisions

NET SERVICOS: Shareholders Approve Debt Restructuring Plan
* Incoming Government Leadership Mulls State Debt Renegotiation


C H I L E

TELEFONICA CTC: Losses Continue In 3Q02 After Various Charges


M E X I C O

AHMSA: Disallows Creditors From Attending Upcoming Assembly
GRUPO TMM: Announces Operating Partnership With Hub Group


P E R U

SIDERPERU: Shrinks Net Loss In 3Q02 Despite Slower Sales


T R I N I D A D   &   T O B A G O

BWIA: Faces Imminent Closure Pending Concession Decision
BWIA: Pilot Association Questions Training Activities
BWIA: Employees Stage Strike


V E N E Z U E L A

SIDOR: Contemplates Legal Action To End Strike
SURAL: Negotiating Debt With Venalum to Reopen Supply Lines


     - - - - - - - - - -

=================
A R G E N T I N A
=================

AEROLINEAS ARGENTINAS: Bankruptcy Emergence Expected Soon
----------------------------------------------------------
Argentine national carrier Aerolineas Argentinas, which has been
struggling ever since its 1990 privatization, is close to
concluding its current bankruptcy process. The Company, in an
emailed statement to Dow Jones Newswires, said that last Friday
they sent a list of names to a commercial judge made up of
creditors who had agreed to a 60% reduction on what they owed in
exchange for receiving the balance money within two years.

A total of 324 creditors, which represent 76% of the Company's
debt, have accepted the plan. Under Argentine law, Aerolineas
needs to have the support of creditors controlling at least two
thirds of the total debt. Aerolineas, owned by private Spanish
consortium Air Comet, had also gained the support of 60% of the
total number of creditors, well above the 51% minimum the law
requires.

The Company proposed to pay back the remainder of the pending
obligations in three intallments - 10% after three months, 35% in
12 months and 55% at the end of the two years. The debt will be
paid entirely in pesos even though the ARS2.5-billion
($1=ARS3.585) debt the Company had when it filed bankruptcy was
in both pesos and dollars.

CONTACT:  AEROLINEAS ARGENTINAS
          Torre Bouchard 547, 1106 Buenos Aires, ARGENTINA
          Phone: (54-11) 4310-3000
          Fax: (54-11) 4310-3585
          E-mail: volar@aerolineas.com.ar
          Home Page: www.aerolineas.com.ar
          Contact:
          Patricio Zabalia Lagos, President

          AIR COMET
          Baha de Pollensa, 21-23
          Edificio Airplus
          28042 Madrid
          Phone: 913 993 674
          Fax:  913 291 146
          E-mail: airplusops@jet.es
          Contact:
          Antonio Mata, presidente de Air Comet


PECOM ENERGIA: Sells Venezuelan Gas Field Shares
------------------------------------------------
The Venezuelan subsidiary of PeCom Energia has sold some of its
assets in the country, reports local paper El Cronista. Japanese
oil company Teikoku Oil bought about 50 percent of its shares in
the San Carlos and Tinaco gas fields for US$1 million in cash and
US$4 million to start seismic operations in the area. Teikoku
will be paying an additional US$3 million through a bond if the
blocks prove to be productive.

The Venezuelan subsidiary of PeCom generated 13 percent of the
VEB$1.656bil turned over by PeCom Energia, and generated 27
percent of the VEB$687mil obtained by the group in cash flow last
year. PeCom invested a total US$1.686bil in Venezuela for the
past eight years.

Previously, Perez Companc signed a definitive stock purchase
agreement allowing Brazil's federal energy company Petrobras to
acquire a controlling 58.6% stake in the company.

CONTACT:  PECOM ENERGIA S.A. DE PEREZ COMPANC S.A.
          Maipo 1 - Piso 22 - C1084ABA
          Buenos Aires, Argentina
          Phone: (54-11) 4344-6000
          Fax: (54-11) 4344-6315
          URL: http://www.pecom.com.ar/


PEREZ COMPANC: Announces JV Agreement With Teikoku Oil
-------------------------------------------------------
Perez Companc S.A. (Buenos Aires: PC NYSE: PC), controlling
company with a 98.21% stake in Pecom Energ¡a S.A. (Buenos Aires:
Peco), announces that it has subscribed an association agreement
with Teikoku Oil Co., Ltd, whereby it transferred 50% of its
rights and obligations inherent to gas production in San Carlos
and Tinaco exploratory areas located in Cojedes, Venezuela.

The Transfer of Interest Agreement which is subject to the
pertinent authorization by the Venezuelan Ministry of Energy and
Mines, provides for an initial cash payment of US$ 1 million and
a subsequent disbursement of US$ 2 million for the financing of
the exploratory investments program in the Tinaco area in
relation with geological studies, 2D seismic and 2D seismic
evaluation and interpretation. The companies participating in the
joint business agreed to start exploration of 200 Km. of 2D
seismic in the Tinaco area by the end of 2002.

Furthermore, in the event a joint commercial development in such
area is agreed upon, Pecom Energ¡a S.A. will receive a
supplementary payment in the amount of US$ 3 million. Pecom
Energ¡a S.A., with the remaining 50% interest in such areas, will
continue in its role as operator.

In connection with such a transaction and taking into account the
exploration investments previously made by Pecom Energ¡a S.A.,
the Company will record a loss of approximately P$38 million.


* S&P Rates Argentine BODEN Bonds CC
-----------------------------------
Standard & Poor's Ratings Services said Wednesday that it
assigned its double-'C' rating to the Republic of Argentina
Argentine peso-denominated ArP3.438 billion 2007 BODEN bond due
Feb. 3, 2007, the U.S. dollar-denominated US$886 million 2005
BODEN bond due May 3, 2005, and the U.S. dollar-denominated
US$11.77 billion 2012 BODEN bond due Aug. 3, 2012.

The bonds were issued by Argentina's government to depositors who
chose to participate in the "bonds-for-term-deposits swaps"
program applied to frozen deposits. They were also issued to
banks as compensation for the asymmetric pesification of their
assets and liabilities. The new bonds that will be issued to
depositors once the second ongoing swap concludes are also likely
to be rated double-'C' by Standard & Poor's.

Standard & Poor's also assigned its single-'C' rating to the
short-term dollar-, peso-, and dollar-linked -peso-denominated
notes (LEBACs) issued by the Banco Central de la Republica
Argentina. The long-term BODENs and short-term LEBACs are rated
the same as other long- and short-term nondefaulted Argentinean
obligations.



===========
B R A Z I L
===========

BRASIL TELECOM: Dollar-Denominated Debt Swells In 3Q02
-------------------------------------------------------
Brasil Telecom, Brazil's third largest fixed line operator in
terms of lines in service, saw its dollar-denominated debt climb
2.6 percentage points to 9.2% of total debt at the end of the
third quarter of 2002. The Company, says Business News Americas,
attributed the increase to the 32.7% depreciation of the real
against the dollar during the quarter.

At the end of September, Brasil Telecom had BRL409 million
(US$107mn) in dollar-denominated debt. The Company had hedged
38.1% of its dollar debt, and 100% of all dollar debt coming due
through the end of next year. Excluding inter-company debt with
controller Brasil Telecom Participacoes, the Company's debt to
equity ratio stood at 34.5% at the end of the quarter.

Brasil Telecom also reported a net reduction of 349 employees in
3Q02 compared to the previous quarter, with 5,770 employees at
end-September. At the end of the quarter, Brasil Telecom's
efficiency ratio stood at 1,599 lines in service/employee,
compared to 1,460 lines/employee for 2Q02. Capex was BRL332
million for 3Q02, compared to BRL397 million in the previous
quarter.

Last week, Fitch placed the local currency rating of Brasil
Telecom and Brasil Telecom Participacoes, both rated Local
Currency BBB-, on Rating Watch Negative.

CONTACT:  BRASIL TELECOM PARTICIPACOES
          Sia Sul, Asp, Lote D, Bloco B
          71215-000 Brasilia, D.F., Brazil
          Phone: +55-61-415-1414
          Fax: +55-61-415-1315
          http://www.brasiltelecom.net.br
          Luis O. Carvalho da Motta Veiga, Chairman
          Paulo Pedrao Rio Branco, CFO/Investor Relations
                                         Officer


BSE: Fitch Cuts Ratings
-----------------------
Fitch Ratings downgraded and placed on Rating Watch Negative the
ratings of BSE S.A. The issues affected are: (Downgraded From/To)

                      From                To
--National Scale    BBB-(bra)           CC(bra)
--Debentures 1st Issuance (National Scale)
                    BBB-(bra)           CC(bra)

The rating actions consider the continued deterioration in the
operating environment in Brazil, a weaker outlook for domestic
growth and a contraction in the external credit lines available
to Brazilian companies. In addition, the sharp devaluation of the
Brazilian real and the hike in already high local interest rates
will add to the financial pressures faced by many corporates.
Such factors affect the ability of the Company to generate cash
flow to meet debt service obligations and to refinance short-term
debt.

Liquidity for Brazilian corporates remain under pressure as many
companies have been shut out from the international markets, for
the most part, over the last couple of years. The local banks and
domestic capital markets have replaced a portion of the debt
previously funded internationally, but prospects for further
tightening in the domestic market seem more pronounced, which
adds to refinancing risk. Fitch expects local banks' lending
capacity will be squeezed by higher reserve requirements,
continued government borrowing needs, and by limited access to
foreign funding, which further exacerbates refinancing risks for
the corporates.

The ratings agency is also concerned about trade finance
available to exporters. Access to trade finance revolves around
the changing sentiment of international banks toward this form of
debt. Historically, international banks have supported Brazilian
exporters during difficult periods by extending trade finance
lines - albeit at high interest rates - to Brazilian banks that
would, in turn, lend the funds to the top exporters. Exporters
have benefited from this arrangement by receiving relatively
inexpensive working capital financing and by having an important
source of funding available during the most difficult periods.
The Brazilian government benefited, in turn, by having its most
important generators of hard currency remain solvent when the
country was in the midst of political or economic turbulence.

During 2002, the landscape changed with international banks
essentially cutting off trade finance to Brazilian exporters for
about two weeks during the first weeks of July and offered it
only to a very select group of companies at extremely high
interest rates according to a survey of companies rated by Fitch.
In the beginning of August, anecdotal information from top-tier
exporters contacted by Fitch suggested that only 20%-30% of trade
lines were being renewed. As a result, corporates that have lower
financial flexibility and liquidity relative to their current
trade finance lines remain under pressure should investor
confidence fail to return to Brazil in the near term. If this
situation persist, it is likely that further negative rating
action could occur.

Fitch will continue to closely monitor the events in Brazil as
well as other factors that may affect credit risks.


FIAT: May Sell Bank in Brazil to Raise Cash
-------------------------------------------
FIAT, the Italian assembler in Brazil may sell its financial arm
in the country Banco Fiat. Local paper O Estado de Sao Paulo
reports that the move is part of the company's plan to raise
assets of US$1.12 billion by the end of this year. The company is
facing total debts of US$3.5 billion and is struggling to honor
deals with creditors. According to international agencies, the
bank is worth some US$97.4 million.

The report indicates four banks that would be the most likely
candidates for Banco Fiat's portfolio, worth R$3bil: Bradesco,
Itau, Unibanco and ABN-Amro Bank.

In 2001, the institution posted a profit of R$132mil, 52% of the
figure posted by Fiat. Earlier reports held that Fiat is looking
for a partner for its Brazilian financing arm.


MRS LOGISTICA: Fitch Drops Local Currency To BB- on Weakness
------------------------------------------------------------
Fitch Ratings downgraded the local currency rating of Brazilian
railroad concessionaire MRS Logistica to BB- from BB and placed
it on Rating Watch Evolving.

The rating actions consider the continued deterioration in the
operating environment in Brazil, a weaker outlook for domestic
growth and a contraction in the external credit lines available
to Brazilian companies. In addition, the sharp devaluation of the
Brazilian real and the hike in already high local interest rates
will add to the financial pressures faced by many corporates.
Such factors affect the ability of the Company to generate cash
flow to meet debt service obligations and to refinance short-term
debt.

Liquidity for Brazilian corporates remain under pressure as many
companies have been shut out from the international markets, for
the most part, over the last couple of years. The local banks and
domestic capital markets have replaced a portion of the debt
previously funded internationally, but prospects for further
tightening in the domestic market seem more pronounced, which
adds to refinancing risk. Fitch expects local banks' lending
capacity will be squeezed by higher reserve requirements,
continued government borrowing needs, and by limited access to
foreign funding, which further exacerbates refinancing risks for
the corporates.

Fitch is also concerned about trade finance available to
exporters. Access to trade finance revolves around the changing
sentiment of international banks toward this form of debt.
Historically, international banks have supported Brazilian
exporters during difficult periods by extending trade finance
lines - albeit at high interest rates - to Brazilian banks that
would, in turn, lend the funds to the top exporters. Exporters
have benefited from this arrangement by receiving relatively
inexpensive working capital financing and by having an important
source of funding available during the most difficult periods.
The Brazilian government benefited, in turn, by having its most
important generators of hard currency remain solvent when the
country was in the midst of political or economic turbulence.

During 2002, the landscape changed with international banks
essentially cutting off trade finance to Brazilian exporters for
about two weeks during the first weeks of July and offered it
only to a very select group of companies at extremely high
interest rates according to a survey of companies rated by Fitch.
In the beginning of August, anecdotal information from top-tier
exporters contacted by Fitch suggested that only 20%-30% of trade
lines were being renewed. As a result, corporates that have lower
financial flexibility and liquidity relative to their current
trade finance lines remain under pressure should investor
confidence fail to return to Brazil in the near term. If this
situation persist, it is likely that further negative rating
action could occur.

Fitch will continue to closely monitor the events in Brazil as
well as other factors that may affect credit risks.

CONTACT:  MRS LOGISTICA S.A.
          Praia de Botafogo, 228/1201-E
          Rio de Janeiro - RJ, 22359-900
          Brazil
          Phone: 55-21-2559-4600
          Fax: 55-21-2552-2635
          E-mail: daf@mrs.com.br
          Home Page: http://www.mrs.com.br
          Contacts:
          Julio Cesar Pinto, Chief Financial Officer
          Phone: (21) 2559 4600
                     (32) 3239 3600
                     (11) 3648 8401
          Fax:     (21) 2552 2635
                     (32) 3239 3609
                     (11) 3645 2743
          E-mail: jfn@mrs.com.br


NET SERVICOS: Board Notes Ongoing Debt Renegotiation Decisions
--------------------------------------------------------------
Net Servi‡os de Comunica‡ao S.A. ("the Company"), a publicly held
company, with its headquarters located in the City and State of
Sao Paulo, at Rua Verbo Divino nø 1,356, 1st floor, Ch cara Santo
Ant“nio, enrolled with the CNPJ/MF under nø 00.108.786/0001-65,
hereby informs the public of the following relevant notice:

The Board of Directors of the Company has held a meeting on this
date to deliberate, among other issues, on the process of
financial re-equation of the Company and on the creation of a
pledge on certain assets to be offered as security by the
Company's subsidiaries, as widely disclosed in prior relevant
notices.

The Board of Directors became aware of several multilateral
negotiations involving a large number of parties, which fact has
delayed completion of the Company's financial re-equation, thus
preventing the issue to be resolved at the General Meeting of
Shareholders of October 28, 2002, and also resulting in the
cancellation of the debentures holders' general meetings.

Considering the material changes in the conditions of the
financial and foreign exchange markets, as from the moment that
the financial re-equation of the Company's debt was defined, the
Board of Directors has recognized the need of the Company to
proceed with the negotiations, seeking the proper completion of
the process, while keeping the original goals.

Finally, the Board of Directors recommended to the Company's
shareholders that they await the conclusion of such negotiations
before deliberating on the amendments to the 2nd and 3rd
issuances of public debentures. The Board of Directors will call
in due course the competent shareholders meeting to discuss the
matter.

Sao Paulo, October 29 th , 2002.
Leonardo P. Gomes Pereira
Investor Relations and Chief Financial Officer

CONTACT:  Net Servicos De Comunicacao SA
          Registered Office
          Rua Verbo Divino, 1.356 - 1 Andar
          Santo Amaro
          04719-002 Sao Paulo - SP
          Brazil
          Tel  +55 11 5186-2606
          Fax  +55 11 5186-2780
          Web  http://www.globocabo.com.br/
          Contacts:
          Roberto Irineu Marinho, Chairman
          Jose Roberto Marinho, Member
          Henri Philipe Reischtul, Member


NET SERVICOS: Shareholders Approve Debt Restructuring Plan
----------------------------------------------------------------
In an official company press document, Net Servicos issued the
following minutes from its recent Extraordinary Shareholders'
Meeting:

DATE, TIME AND VENUE: On October 28, 2002, at 10:00 o'clock a.m.,
at the Company headquarters, located at 1356 Verbo Divino Street,
Sao Paulo, SP. ATTENDANCE: Present at the Meeting the
shareholders, owners of 75.6% of the voting shares issued by the
Company, as evidenced by the signatures in the "Shareholders'
Attendance Book". MEETING BOARD: Chairman - Marco Aur‚lio dos
Anjos Ferreira; Secretary - Arnaldo Cordeiro Pacheco de Medeiros
Montenegro. CALL:

Summoning notice published on September 27, 28 and October 01,
2002, in the Official Journal of the State of Sao Paulo and in
the newspaper "Valor Econ“mico" on September 27, 28 and 30 and
new call to meeting published in the Official Journal of the
State of Sao Paulo on October 10, 11 and 12 and in the newspaper
"Valor Econ“mico" on October 09, 10 and 11, 2002.

AGENDA:

1. Approval of changes to the indenture of 3rd public issuing of
debentures of the Company, in the scope of the restructuring of
debt object of Relevant Notice published on the "Valor Econ“mico"
newspaper on July 16, 2002, and of changes to the indenture of
2nd public issuing of debentures of the Company in regards to
providing collateral by the Company for the purposes of clause
8.1.11 of the first amendment to said deed of 2nd public issuing.

2. To amend article 5 of the Company's By-laws to reflect the
increase in capital stock in the amount of R$ 1,223,411,170.80,
changing from R$ 1,525,239,629.31 to R$ 2,748,550,800.11, divided
into 828,371,343 common shares and 1,200,484,187 preferred
shares, all nominative, book-entry shares, no-par value, in
conformance with the approvals of the meetings of the Company's
Board of Directors held on 8.9.2002, 8.19.2002 and 9.25.2002,
respectively.

3. To amend Article 2 of the Company's By-laws to authorize the
Board of Directors to deliberate on the transfer of address of
the Company's headquarters.

4. To elect a new official member, as well as his alternate, to
the Company's Board of Directors. DECISIONS: By unanimous
decision the following was approved:

i) To amend article 5 of the Company's By-laws to reflect the
increase in capital stock in the amount of R$ 1,223,411,170.80,
changing from R$ 1,525,239,629.31 to R$ 2,748,550,800.11, divided
into 828,371,343 common shares and 1,200,484,187 preferred
shares, all nominative, book-entry shares, no-par value, in
conformance with the approvals of the meetings of the Company's
Board of Directors held on 8.9.2002, 8.19.2002 and 9.25.2002,
respectively.

Therefore, article 5 of the Company's By-laws shall now
effectively read as follows:

"Art. 5§. - The Capital Stock is R$ 2,748,550,800.11 (two
billion, seven hundred and forty-eight million, six hundred and
fifty thousand, eight hundred Reals and eleven cents of Real),
divided into 828,371,343
common shares and 1,200,484,187 preferred shares, all nominative,
book-entry shares, no-par value. The Capital Stock may be
increased to R$ 5,000,000,000.00 (five billion Reals), regardless
of amendment to the statutes, as provided for in article 168 of
Law 6,404/76, by deliberation of the Board of Directors, which
will determine the conditions for the issuing, in the terms of
paragraph one of article 170 of Law 6,404/76."

ii) To amend Article 2 of the Company's By-laws, which shall now
effectively read as follows:

"Art. 2§. - The Company is headquartered and has its venue in the
City of Sao Paulo, State of Sao Paulo and may, by deliberation of
the Board of Directors, transfer the address of the Company
headquarters, open, maintain and close branches, offices,
warehouses or representation agencies in any part of the national
territory or abroad."

iii) To approve the election to occupy the position as member of
the Board of Directors of the Company, Mr. Eduardo Bunker Gentil,
Brazilian, married, economist, bearer of ID N§ 3361829, issued by
SSP/SP, enrolled in the Tax Roll (CPF/MF) under N§ 001067468-39,
with offices at Avenida Rep£blica do Chile 100, 19§ andar, in the
City and State of Rio de Janeiro, and to approve the election to
occupy the position as alternate member Mr. Alan Adolfo Fischer,
Brazilian, legally separated, engineer, bearer of ID N§ 3284209-
8, issued by IFP/RJ, enrolled in the Tax Roll (CPF/MF) under N§
667250037-53, with office at Avenida Rep£blica do Chile 100, 9§
andar, in the City and State of Rio de Janeiro, according to the
nomination from the shareholder BNDES Participa‡oes S.A. -
BNDESPAR. The directors now elected declare that they are not
impeded from exercising commercial activities.

iv) To temporarily adjourn this Meeting, which shall be resumed
on October 30, 2002, at 3:00 o'clock p.m., at the Company
headquarters, at 1,356 Verbo Divino Street, in the City of Sao
Paulo, State of Sao Paulo, when the Shareholders shall decide
about the issue listed in item 1 of the above described "Agenda".

CLOSING: As there were no further issues to be discussed at this
time, and as nobody wished to speak, this Meeting was temporarily
adjourned, and having these minutes being drawn up, read and
verified, it was by all approved. ROMA PARTICIPACOES LTDA.,
DISTEL HOLDING S.A. and GLOBO COMUNICACOES E PARTICIPACOES S.A.
represented by Manuel Martins Teixeira Pinto and BNDES
PARTICIPACOES S.A. - BNDESPAR represented by Arnaldo Cordeiro
Pacheco de Medeiros Montenegro.

Sao Paulo, October 28, 2002
Marco Aur‚lio dos Anjos Ferreira
Chairman
Arnaldo Cordeiro Pacheco de Medeiros Montenegro
Secretary


* Incoming Government Leadership Mulls State Debt Renegotiation
---------------------------------------------------------------
The Brazilian government is willing to renegotiate state debt but
only if it gains assurance that there is political support on tax
and pension reform, according to Jose Dirceu, head of Brazilian
President-elect Luiz Inacio Lula da Silva's party.

"We can't start negotiations with states without taking into
account the country's (fiscal) situation," Mr. Dirceu, president
of the Workers' Party, said. "We have to form a pact with
governors to approve the tax and social security reforms."

In a Bloomberg report, Mr. Dirceu emphasized that giving states
debt relief without reducing the social security deficit and
simplifying Brazil's system of 53 taxes would fuel inflation and
cut revenue the federal government needs to make payments on its
roughly $300 billion debt. Brazil's currency and bonds have
fallen by a third in 2002 on concern Mr. Lula may raise deficit
spending or take other steps that may prompt South America's
biggest economy to default.

President Fernando Henrique Cardoso, who steps down Jan. 1, and
President-elect Lula have promised to maintain a surplus before
interest payments of 3.75% of the country's gross domestic
product. The goal is a condition for Brazil to receive US$30
billion in loan package pledged by the International Monetary
Fund. The country's 27 states owe the federal government 244.5
billion reais ($58 billion) and states set aside about 13 percent
of revenue to pay debt to the federal government, he said.




=========
C H I L E
=========

TELEFONICA CTC: Losses Continue In 3Q02 After Various Charges
-------------------------------------------------------------
Chile's incumbent telco Compania de Telecomunicaciones de Chile,
or CTC, posted a US$22.5-million net loss for the third quarter
of this year, from a US$20.8-million net profit in the same
quarter in 2001. In the first nine months of this year, it
registered a net loss of US$20.7 million, up substantially from a
net loss of US$12.8 million from January through September of
2001.

The loss was principally due to a $20.0 million charge in
severance pay it booked in the quarter for the layoff of 900
employees as part of a broad restructuring plan.

It also booked a US$1.5-million charge on the sale of 25% of
information technology unit Sonda, and a US$3.9-million charge
due to the drop in market value of its holdings of Internet
company Terra Lycos SA. Consequently, non-operating losses
widened to US$59.0 million from US$23.5 million in the quarter,
the Company said.

In the third quarter, sales dropped 2.4% to US$288.9 million, CTC
said, without providing a comparative figure, principally due to
falling sales at Sonda and reduced income due to a new deal with
Publiguias, which publishes Chilean "yellow-page" business
directories.

Earnings before interest, taxes, depreciation, and amortization
declined 7.1% to US$132.0 million from US$142.1 million, while
operating profit fell 18.7% to US$46.2 million from US$56.8
million.

CTC had 2.72 million fixed lines in service, and 1.76 million
mobile subscribers at the end of September, down 1.1% and up 19%
from the same date last year, respectively.

CONTACT:  TELEFONICA CTC CHILE
          Avenida Providencia 111, Piso 2
          Santiago, Chile
          Phone: +56-2-691-2020
          Fax: +56-2-691-2392
          Homepage: http://www.ctc.cl
          Contacts:
          Mr. Bruno Philippi, President
          Mr. Jacinto D­az, Vice President
          Gisela Escobar, Head of Investor Relations



===========
M E X I C O
===========

AHMSA: Disallows Creditors From Attending Upcoming Assembly
-----------------------------------------------------------
Mexican steelmaker Altos Hornos de Mexico SA (AHMSA) informed the
Mexican Stock Exchange that only registered shareholders will be
allowed to attend the Company's upcoming shareholders meeting,
relates Dow Jones. Those creditors holding shares pledged as loan
guarantees will be barred from the assembly, at the company's
headquarters in the northern city of Monclova, the filing said.

AHMSA was predicting that creditors might seek the removal of the
current management during the assembly. Expectations are that
creditors of AHMSA's holding company Grupo Acerero del Norte
(GAN) would attempt to exercise voting rights on Ahmsa shares
that were pledged as a guarantee for loans to GAN.

The current management at AHMSA is the largest steel producer in
Mexico with two plants in Monclova, Coahuila state. has come
under pressure from creditors for failing to resume payments on
US$1.8 billion in debt, despite reaching a restructuring
agreement last year. AHMSA is the largest steel producer in
Mexico with two plants in Monclova, Coahuila state.

But Ahmsa explained that under a 1999 suspension of payments on
debt, a court ordered the National Banking and Securities
Commission and the Mexican Stock Exchange to freeze the shares,
disallowing them to be used for any legal or commercial action.

CONTACT:  AHMSA
          Prolongacion B. Juarez s/n,
          Monclova , Coahuila 25770
          Mexico
          http://www.ahmsa.com
          Phone: +52 86 33 81 72
          Fax: +52 86 33 65 66
          Contacts:
          Alonso Ancira Elizondo, CEO, Vice Chairman, Pres./CEO
          Jorge Ancira Elizondo, Chief Financial Officer
          Manuel Ancira Elizondo, Chief Operating Officer


GRUPO TMM: Announces Operating Partnership With Hub Group
---------------------------------------------------------
Grupo TMM, S.A. (NYSE: TMM) announced Wednesday an operating
partnership between its wholly owned subsidiary, TMM Logistics,
and Hub Group to create a joint network to manage freight moving
between Canada, the United States and Mexico.

TMM Logistics will provide all sales support and operational
execution within Mexico, offering seamless logistical customized
cross-boarder shipping solutions, linking railways, roads, ports
and a majority of the main cities and production centers in
Mexico.

Headquartered in Mexico City, Grupo TMM is Latin America's
largest multimodal transportation company. Through its branch
offices and network of subsidiary companies, Grupo TMM provides a
dynamic combination of ocean and land transportation services.
Grupo TMM also has a significant interest in Transportacion
Ferroviaria Mexicana (TFM), which operates Mexico's Northeast
railway and carries over 40 percent of the country's rail cargo.

More information is available at Grupo TMM's web site:
www.grupotmm.com.mx and TFM's web site: www.tfm.com.mx. Both
sites offer Spanish/English language options.

CONTACT:  Grupo TMM
          Jacinto Marina, 011-525-55-629-8790
          jacinto.marina@tmm.com.mx

          Brad Skinner (IR), 011-525-55-629-8725
          brad.skinner@tmm.com.mx

          Luis Calvillo (Media), 011-525-55-629-8758
          luis.calvillo@tmm.com.mx

          Dresner Corporate Services
          Kristine Walczak, 312/726-3600
          kwalczak@dresnerco.com



=======
P E R U
=======

SIDERPERU: Shrinks Net Loss In 3Q02 Despite Slower Sales
--------------------------------------------------------
SiderPeru, Based in Chimbote in western Peru's Ancash department,
reduced its net loss in the third quarter of this year, reports
Business News Americas. In a filing with Lima's securities
regulator, the steelmaker revealed that its net loss for the
quarter is now down to PEN1.96 million (US$543,000) compared to a
loss of PEN2.79 million in same-quarter 2001. Total sales for the
quarter were PEN107 million (US$29.7 million) against PEN113
million in the same year-ago period.

For the first nine moths of 2002, SiderPeru posted a loss of
PEN3.48 million (US$966,000), significantly better than the loss
of PEN17.5 million for the same period a year ago.

Siderperu, initiated a form of bankruptcy protection in August to
completely refinance its debt, said in May it will invest US$4
million this year, and US$6 million annually over the next 8-10
years, following its restructuring plans.

Siderperu predicted sales to the mining and trading sectors for
this year will amount to US$33 million, while production will
total 27,283 tons, 52-percent of which is attributable to the
construction sector.

The Company has a liquid steel capacity of 520,000tpy, and makes
long and flat products. Among its key clients is Moly-Cop in Peru
and Chile that manufacture steel grinding balls for mills. The
three companies are managed by GS Industries of South Carolina.

CONTACT:  SIDERPERU - EMPRESA SIDERURGICA DEL PERU
          Av. Los Rosales 245, Santa Anita
          Lima 43, Peru
          Phone: +51 1 362 0646
          Fax: [+51] 1 362 0636
               [+51] 1 362 0667
          E-mail: postmast@sider.com.pe
          Home Page: http://www.sider.com.pe/



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: Faces Imminent Closure Pending Concession Decision
--------------------------------------------------------
BWIA, the Trinidad-based airline is facing closure after 63 years
of operation. The company holds its collective breath while
awaiting the employees' decision on proposed concessions. The
outcome will determine BWIA's operational future. The deadline
for the concessions was set for Thursday.

Some trade unions have asked for the re-nationalization of the
airline, which the government has thus far declined. A report
from The Caribbean Investor said the airline sought government
help for bail out but was told that the government would await
the moves of the shareholders and the employees. The government,
owning a 49 percent share in the airline since its privatization,
has also refused to increase its equity stake.

During BWIA's privatization, the government absorbed the
airline's debt worth US$300 million.

However, the government of Barbados expressed its willingness to
support the ailing airline. Barbados promoted BWIA's Manchester
route and waived landing fees. Almost one-third of all of BWIA's
traffic goes to Barbados.

The government of Grenada said it will buy shares from the
airline if the act will help ensure the airline's survival. BWIA
executives are confident that an agreement for restructuring will
be reached by the current deadline. According to BWIA chairman
Lawrence Duprey, the company's half-year results reflected the
industry's condition in general.

Mr. Duprey said that the current slump in the industry was caused
by the September 11 terrorist attack in the US, and that BWIA is
not the sole airline to be affected. Since the attacks, the
company's operating revenues fell by US$53.96 million.

Duprey added that the airline's problems are compounded by the
proliferation of foreign charters with predatory pricing, and
labor disruption in the peak summer season.

BWIA's cost cutting measures include the reduction of its fleet,
which results in the displacement of 40 pilots. The Board of
Directors and other senior officers were given a pay cut and
monthly concession payments will be reduced.

The report shows that as of June this year, the airline's
consolidated net loss for the year to date stood at US$54.34
million as compared to a net profit of US$6.04 million for the
first six months of 2001. Last year when the airline announced a
US$17.8 million profit, the Government granted US$63 million to
BWIA.

CONTACT:  British West Indies Airways
          Phone: + 868 627 2942
          E-mail: mailto:mail@bwee.com
          Home Page: http://www.bwee.com/
          Contacts:
          Conrad Aleong, President and CEO (Trinidad)
          Beatrix Carrington, VP Marketing and Sales (Barbados)
          Paul Schutz, CFO (Trinidad)


BWIA: Pilot Association Questions Training Activities
-----------------------------------------------------
The Airline Pilots Association of Trinidad and Tobago revealed
that BWIA has begun training four pilots to operate the Dash-8
aircraft. The move comes in contrast to the company's recent
announcement to sell three such planes, along with the intention
lay off 40 pilots. BWIA is currently in a cost-reduction program,
and the 40 pilots to be fired were given a three-month
retrenchment notice.

The pilots in the association are seeking an investigation as the
airline has already sold one Dash-8 unit. They are also clamoring
for an assessment of the company's cost-reduction plan, reports
the Trinidad Guardian.

According to the report, Clint Williams, corporate communications
director for the airline, said he was not sure about the pilots
being trained for the Dash-8s and had to look into the matter to
find out. Mr. Williams suggested that maybe the pilots had to
keep their qualifications with the aircraft updated to retain
their licences.

Earlier, BWIA had asked its employees' cooperation in cost
reduction to help the airline survive the business slump. The
deadline for the concession is set for Thursday. TTALPA had
expressed their willing to support BWIA's proposed restructuring
plans, if they are given full details of the plan. Along with
other trade unions, TTALPA is asking that an independent audit on
the company's books be conducted.


BWIA: Employees Stage Strike
----------------------------
Employees of embattles airline BWIA were set to stage a rally on
the day before the set deadline for concessions. The Trinidad
Guardian stated that the employees felt they needed to take a
stand on the direction of the airline's future.

According to the Head of the Aviation Communication and Allied
Workers Union, Christopher Abraham, the aim of the meeting at the
Centre of Excellence is "to get a final position from the
workers." BWIA had asked its employees to agree to concessions,
as the company aims to save at least US$1 million dollars every
month to keep the airline alive.

Earlier reports indicate a number of BWIA employees felt
"harrased" by the posted countdown of days until Oct 31, the
deadline. Flight attendants may not agree to the proposed
reduction of their three-day stop-over in London to 18 hours, a
mandatory 14-hour work schedule for intra-Caribbean and North
American flights as these can be detrimental to their performance
in the air.

The attendants say they understand that the airline needs help,
but they are asking for reconsideration of the proposed reduction
in crew lunches and vacation, saying that there are other avenues
where the airline can save money.

BWIA chief, Conrad Aleong, said management was willing to take a
five per cent cut, he would personally give up seven per cent.
However, the proposed salary cuts may be worthless, the flight
attendants said, as the reduction in personal tax would enable
the executives to retain the amount supposed to given up.


=================
V E N E Z U E L A
=================

SIDOR: Contemplates Legal Action To End Strike
----------------------------------------------
Talks between striking union members and management
representatives of Siderurgica del Orinoco (Sidor) over a dispute
about bonus calculations collapsed Wednesday, relates Business
News Americas. Unions have been on strike since Monday and,
despite ongoing talks at resolving the bonus issue, workers
downed tools halting operations at the plant. The current bonus
impasse stems from negotiations under an agreement that ended a
series of short strikes last month over other demands.

Now that talks have collapsed, institutional relations director
Gaston Montiel revealed that the Venezuela flat steel maker is
mulling the idea of using legal action to put an end to the
strike.

"The correct legal procedures for a strike were not followed in
this case, as no demands were presented officially, and so this
unforeseen stoppage is not legal," Montiel told Business News
Americas.

Montiel said the supposed erroneous calculation of bonuses was a
result of working conditions being improved. The need to work
free days or excessive overtime has been reduced as part of the
company's attempt to "humanize" and make more rational use of the
labor force, he said.

Sidor was privatized in 1990 when the Amazonia consortium - made
up of Mexico's Hylsamex, Argentina's Techint group (including its
Mexican unit Tamsa), Venezuela's Sivensa and Brazil's Usiminas -
acquired 70% of the company.

State heavy industry holding company CVG held on to 30% but its
stake is due to rise to 42% under a refinancing package announced
in August that involves capitalizing part of Sidor's debt.

CONTACT:  SIDERURGICA DEL ORINOCO, C.A. (SIDOR)
          Edificio General, Piso 9
          Avda. La Estancia
          Chuao, Caracas 1060
          Venezuela
          Tel: (582) 902 3800/3917/3955
          Fax: (582) 993 2930
          Home Page: www.sidor.com.ve/


SURAL: Negotiating Debt With Venalum to Reopen Supply Lines
-----------------------------------------------------------
Venezuelan private sector aluminum fabricator Sural is now in
talks with Venalum, the aluminum smelting subsidiary of state
heavy industries holding company CVG, reports Business News
Americas. The talks, according to a Venalum spokesperson, are
aimed at helping Sural find a way to deal with the amounts owed
to South America's largest aluminum producer.

Last month, Venalum halted the supply of primary aluminum to
Sural after the debt-ridden company only made part of a US$5.5-
million payment. Sural was unable to pay its debt in spite of a
recently signed agreement which established new payment
conditions and other facilities to help reduce the fabricator's
US$52-million in debt. However, Venalum denied it is seeking to
close Sural.

"It wouldn't benefit Venalum or CVG to force the company's
bankruptcy. But you must also understand Venalum's position; we
can't continue delivering material if we're not paid for it,"
said its spokesperson.

Founded in 1976, Sural is one of the largest manufacturers of
wire, wire rod, and aluminum bars used in mechanical applications
and welding, as well as cables and conductors for electricity. It
has three plants, in Puerto Ordaz (Venezuela), Taranto (Italy)
and Quebec, Canada.



               ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Ma. Cristina Canson, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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